A Major Reason for Using the Contribution Format Income Statement

question 3

Multiple Choice

A major reason for using the contribution format income statement is that

• A)it separates variable and fixed cost components.
• B)it increases information available to management.
• C)it allows management to establish what sales level is necessary to cover fixed costs.
• D)it indicates the sales mix of the company's products or services.

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Definitions:

National Insurance

A system of compulsory payments made by employees and employers to fund various types of state benefits and healthcare.

Easements

Rights granted to use the property of another for a specific purpose, such as right of way.

Fixtures

Items that are originally personal property but become real property when attached in a permanent manner to land or a building.

Lost Property

Property that is found where it appears to have been left unintentionally, such as items lost by their rightful owner.